Cryptocurrency In India

India needs a regulatory framework for cryptocurrencies

Listen to the podcast to know about the massive rally in Bitcoin's price and does it stand a chance to replace gold as an investment bet?

The Indian government's ambivalent attitude towards this asset class is another key risk for investors keen to climb on to this bandwagon

India recorded a cryptocurrency mining encounter rate that was 4.6 times higher than the regional and global average

Experts say what will also play on the minds of policymakers is the potential upside of taxing the cryptocurrency trade.

Monitoring of cryptocurrency is a much better option

On Wednesday, Supreme Court set aside RBI's circular which prohibited banks from facilitating transactions in cryptocurrencies

The apex court on Wednesday set aside an RBI circular of 2018 which had prohibited financial sector entities from providing services to any individual or business dealing in virtual currencies.

In fact, in the first meeting of the committee, which was held on November 27, 2017, the committee had broadly agreed that "the banning option is difficult to implement"

Those with funds in the wallet need to wait indefinitely. Cryptocurrencies, however, can still be traded on exchanges

With Indian banks out of the picture, peer-to-peer exchanges offer cryptodollar-backed transactions

The central bank has been arguing there's a security risk because the wallets are stored electronically where the currencies are kept

Cryptocurrency trade in rupees will stop from midnight, while exchanges or cryptocurrency companies will now be unable to avail loans or hold bank accounts

SC hearing also scheduled, even as RBI window for ending all deals with crypto-currency exchanges closes next week

The source in the company said the July 20 date for hearing defeats the purpose since banks have to wind up their dealings by July 6, according to RBI's directions

The industry stakeholders also rued the fact that they were not consulted before RBI took its decision

Government has not yet imposed curbs on the cryptocurrency industry that is estimated to be adding 200,000 users in India every month

Cryptocurrencies have gained so much traction in the past year that many governments have been forced to review these instruments.